2008

In 2008, the current account surplus contracted by half from the previous year, amounting to no more than about 2% of GDP. The year was exceptional especially for portfolio investment, as falling share prices and sales of securities reduced external portfolio assets and liabilities.

The current account surplus was cut by half in 2008. The main factors underlying this contraction were both the weakening of goods trade and the income account. The balance of trade deteriorated throughout the year, with the exception of a few months. The trade surplus finally settled at about a third lower than in 2007. The income account deficit continued to widen and was EUR 1 billion larger than in 2007.

In 2008, there was a net outflow of EUR 4 billion in direct investment. Direct investment registered an outflow of EUR 1.1 billion, and foreign investors repatriated EUR 2.9 billion worth of capital invested in Finland.

The stock of both outward and inward portfolio investment3 started to decline in the course of 2008. Finnish portfolio investment abroad totalled EUR 131 billion, and foreign portfolio investment in Finland, in turn, totalled EUR 174 billion. The collapse in the stocks mainly resulted from lower market values, although capital flows did fall considerably from 2007.